DEALS
ZhongLun’s Legal Expertise Facilitates Mengniu&Danone’s Joining Forces in Yogurt Business
ZhongLun’s Legal Expertise Facilitates Mengniu&Danone’s Joining Forces in Yogurt Business
On May 20, 2013, China Mengniu Dairy Company Limited (2319.HK) announced its partnership with Danone, a major deal met with enthusiasm in the capital market and wide coverage by global mainstream media such as Reuters, Wall Street Journal and Bloomberg. As the legal advisor of Mengniu, ZhongLun’s exceptional services earned accolades from Mengniu and COFCO. Partner SUN Wei’s team followed through on the onshore deal, designing the deal structure & restructuring plan, drafting legal documents and participating in negotiations. Partner XUE Yi’s team also lent their expertise in handling anti-monopoly reviews, providing highly professional advices and highlighting potential risks.
According to the executed Framework Agreement, Danone and Mengniu will set up a joint venture platform to specialize in the production and sales of yogurt. Both Mengniu and Danone will contribute their existing yogurt businesses in China, which in aggregation enjoys a sales of RMB 4 billion and a market share of 21%, into the platform. Upon the establishment of the JV platform, Mengniu and Danone will hold 80% and 20% equity interest, respectively.
At the same time, COFCO Corp, which is Mengniu’s largest shareholder, and Danone have struck a related deal to form a joint venture through which Danone will indirectly take a 4% holding in Mengniu.
The announced deals are subject to government approval which is expected to take a few months. ZhongLun will continue to provide further legal services.
Professionals
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Yi XUE
Equity Partner
BeijingPractices： Antitrust & Competition,Cross-border Investment/M&A,Cybersecurity & Data ProtectionIndustries： Energy & Power,Mining & Natural Resources,Information & Intelligence Technology,Pharmaceuticals & Life Sciences,Media-Sports & Entertainment -
Yi XUE
Equity Partner
Beijing
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